The Bank of England keeps Bank rate unchanged as expected
- The Monetary Policy Committee of the Bank of England decided to keep the Bank rate unchanged at 0.75%
- The Monetary Policy Committee´s decision was unanimous in a 9-0 voting pattern on both the Bank rate and the asset purchasing.
The Bank of England´s Monetary Policy Committee decided unanimously to keep the Bank rate unchanged in September.
While the Bank of England decision was widely expected, the market saw a little immediate reaction to the news.
The Bank of England MPC said in the statement that the projected pace of GDP growth was slightly faster than the diminished rate of supply growth, which averaged around 1.5% per year.
Regarding Brexit, the MPC sees the great uncertainty prevailing saying ¨the MPC continues to recognize that the economic outlook could be influenced significantly by the response of households, businesses and financial markets to developments related to the process of EU withdrawal. Since the Committee’s previous meeting, there have been indications, most prominently in financial markets, of greater uncertainty about future developments in the withdrawal process.¨
Author
Mario Blascak, PhD
Independent Analyst
Dr. Mário Blaščák worked in professional finance and banking for 15 years before moving to journalism. While working for Austrian and German banks, he specialized in covering markets and macroeconomics.
